The Sprint to T-Mobile

That’s the sound of two telecommunications giants attempting to become one.

Over the weekend, T-Mobile US Inc. agreed to acquire Sprint Corp. for $26.5 billion in stock, according to a report from Bloomberg.

This mashup would reduce the U.S. wireless industry to three major competitors from four, writes Bloomberg, which it said ensures “heavy scrutiny from regulators.”

T-Mobile CEO John Legere explained “We’re going to have an impact on America…We are going to drag the rest of the players kicking and screaming to the prize, which is American leadership in fifth-generation (5G) networks.”

Some details:

Operating as T-Mobile, the company would have about $74 billion in annual revenue and 70 million wireless subscribers. Verizon is the largest U.S. carrier with $88 billion in 2017 wireless revenue and 111 million subscribers, and AT&T would be No. 2 with $71 billion in wireless revenue and have 78 million regular subscribers.

Fascinating to see the “America First” spin geared towards both regulators and the Trump Administration (obviously to help them navigate and get the blessing of regulators).

Executives stressed the deal would help America outpace China and others in 5G wireless development. “The combination of the 600 megahertz [in wireless spectrum] and other assets that we have are critical building blocks of what America needs to deploy to take its rightful place,” said T-Mobile CEO John Legere.

Many in D.C. worry about China outpacing America in 5G development. Earlier this year, a now-departed senior official in the National Security Council circulated a planto nationalize a 5G network.

The company’s project job growth in retail and customer service operations, with an emphasis on rural areas.

So, to recap: This deal helps us beat China to the 5G punch (National security!), is GREAT for consumers (even though there will now be one less player on the U.S. telecom chessboard), and it will create new jobs in rural ‘Merica.